how to support agility in a company using agile scorecard
TRANSCRIPT
How to support agility
in
a company using
agile scorecard
By Aleksey Savkin
Agility is great, but what IS IT
actually?
Agility is not only about making things faster…
…it is about a focus on better delivering of a customer value!
Business scorecards help management with this as well…
Let’s then use agile scorecard to support agility!
AGILE Scorecard – Safety
Rules1. “Scorecard” is a buzz word, so be
careful when you use it.– It is not (only) about indicators/KPIs, so
don’t get confused by the word “scorecard.”
– It is very similar to the “Balanced Scorecard,” but it is another buzz word even more dangerous than just “scorecard.”
2. Don’t call every number with a meaning a “KPI,” instead call it an indicator or metric.
It’s better to call it
something like
“Our way to win!”
Agile scorecard. Step 1. Mission
• What is your mission?
– It is boring? Generic?
– Do people know it?
– Does it motivate them?
• Put it on the top of the agile
scorecard!
Agile scorecard. Step 2.
STRATEGY• What is your strategy?
– Does it include:
• The analysis of the challenge
• The analysis of its reasons
• The coherent action plan
• Be prepared for the controlled experiments!
Challenge
ActionsReasons
Agile scorecard. Step 2.
STRATEGIC THEMES• Playing with strategic hypothesis (3 strategic
themes)
• A company is good at all strategic themes and
achieved excellence at one of them
Agile scorecard. Step 3.
STRATEGY MAP• Mapping the strategy (specific
objectives)
– How does the value creation support your mission?
– How are financial results linked to the created customer value?
– What do your customers need?
– How do you satisfy customer’s needs?
– Where do you need to focus your future efforts?
HOW?
HOW?
HOW?
Agile scorecard. Step 4.
INDICATORS• How do we know that we are on the
right track?
– Leading indicators – predicting the
future
– Lagging indicators – explaining the
history
STOP! Are you doing this
alone?• Is your team emotionally
connected with your mission?
– If not, you might be in trouble soon.
• Strategy is a collective product
– It must shine on all levels from a top
managers to employees.
• Business goals are not mandated
– They are discussed and “aligned”
with top level priorities
AN EXAMPLE is WORTH A
thousand PICTURES• Grow your agile scorecard vertically
– from Mission to Finance, Customer Value, Operations,
and Learning.
• Let’s have some fun and build a agile scorecard
quickly…
AN EXAMPLE is WORTH A
thousand PICTURES• Add more
layers to your
agile scorecard
– Show how the
departments
are going to
help the
company to
achieve this
Strategy is also about NOT doing
something• Crash-test a new
idea– Use agile
scorecard to understand if/how the new idea supports your strategy
• Use a strategy map as a base for future discussions about new ideas
How do we
make it
happen?
Monitoring performance / tracking
progress
Leading Indicator
Lagging Indicator
Lagging Indicator
Leading Indicator
Action Plan
Action Plan
Main TAKEAWAYS
• “Top-to-bottom” directives are replaced with a discussion around strategy.
• “Carrot and stick” motivation style is replaced with actual buy in and commitment.
• “Formal long-term plans” are supported by short-term controlled experiments.
• Shifting a focus from “doing my job” to creating a value for a customer.
• Employees report not just the progress, but the performance
RECOMMENDED BOOKS AND
ARTICLES• “Good Strategy/Bad Strategy” by
Richard Rumelt
• “The Strategy-Focused
Organization” by Kaplan & Norton
• “The Execution Shortcut” by Jeroen
De Flander
• Our articles at bscdesigner.com
About speaker
Aleksey Savkin, CEO at BSC Designer. Author of the books and articles about the Balanced Scorecard, Key Performance Indicators.
His areas of expertise include business strategy, performance management, agile software development, and remote team’s management.
He helps Spain’s companies, as well as businesses all over the world to describe their strategies and achieve excellence in the strategy execution.
Contact me: 4savkin<at>gmail.com
www.bscdesigner.com